704 Or Bust

UPDATE 10:16am EST: Wasn’t that a nice open? At this point it seems we are heading towards 704 to complete 3 of (5).

However, I decided to take profits at the open as I see 703 as a possibility but not necessity. The risk/benefit ratio favored taking profits now and waiting for new instructions. If this was the end of {v} of 3 then we might get a rally into 4, which might be violent and fast – best not to overstay our welcome down here.

UPDATE 10:34am EST: Here’s a pretty exciting chart:

Gold has been retesting its prior resistance line (now support) but as of this writing remains in the red for the day. Remember that GC – the big pit traded contract – closes at 1:30pm EST, so this is the middle of the day for our favorite precious metal. The fact that Gold appears to be unable to exploit a major drop in equities again confirms my position (mental and actual) that there is a good probability 1007.5 was the peak for this B wave.

Well, my SLV puts are loving it – hope you guys got a piece of that action. If you’re still out I suggest you use rips to start accumulating pertinent July put/short positions. I do see a short term bounce in the cards for both metals, so do use the rips and don’t chase.